Star of Shark Tank and venture capitalist Kevin O’Leary comments about the state of the crypto bear market and how he is allocating his own altcoin portfolio.
Putting The Investment in HNT and PCN
During a recent interview with Crypto Banter, O’Leary said his fund plans to increase crypto positions in Helium (HNT) and Pollen (PCN), both of which are related to decentralized telecommunications.
“Our own operating procedure [dictates that] we can’t own more than 5% of the operating fund in Bitcoin, so we also have positions in ETH and Solana and all kinds of others,” said O’Leary.
“We’re just looking at putting a position on Pollen and Helium which are really eclectic projects around decentralizing telco. But the whole point is, you just simply don’t know when these asset classes are going to move,” he added.
The Stablecoin Transparency Act As a Sign to Regulate Crypto
As a result of the Stablecoin Transparency Act, which will give regulatory clarity to stablecoins, O’Leary believes the industry will be legitimized, attracting new investors.
Kevin O’Leary said, “I have a personal speculation around regulation, I talked about that earlier, that if the Stablecoin Act gets put into law, that will be a signal that all crypto will be regulated at some point. Some people feel good about regulation, others don’t, but here’s a fact to consider regardless of your position.”
He added, “ Most of the sovereign wealth funds that I work for as an indexer have zero position in crypto of any kind. When you ask them if they’re going to buy anything, they want the granddaddy, which is Bitcoin.”
In his explanation, he said that they are willing to put between 50 basis points and 1% in Bitcoin when their compliance departments allow them to, but that will not happen until the SEC rules on it as a security or commodity.
SEC Regulation Can Spark The Next Crypto Bull Run
The US Securities and Exchange Commission (SEC) plays an important role in the investments of sovereign wealth funds around the world, according to O’Leary.
After the US provides clarity on crypto regulations, major international players will flood into the market.
“Here’s the upside, 50 basis points in the sovereign wealth and pension funds is a trillion dollars of buying. So you have to be voting and cheering on regulation, you put a trillion dollars into Bitcoin, that’s when you might see it at $60,000 to $100,000 valuations,” he said.
He detailed, “And those funds don’t care. Once they index it there will be an automatic bid when it dips below the 50 bps they’ve decided to own and they sell into strength so there’s a really really liquid market about to happen. That’s very optimistic for Bitcoin, not pessimistic.”